CC 2014-02-11_08.b. Statement of Investment DepositsMEMORANDUM
TO: CITY COUNCIL
FROM:
BY:
SUBJECT:
DEBBIE MALICOAT, DIRECTOR OF ADMINISTRATIVE SERVICES~
RYAN CORNELL, ACCOUNTING SUPERVISOR ~
CONSIDERATION OF STATEMENT OF INVESTMENT DEPOSITS
DATE: JANUARY 28, 2014
RECOMMENDATION:
It is recommended the City Council receive and file the attached report listing of investment
deposits of the City of Arroyo Grande, as of November 30 and as of December 31, 2013, as
required by Government Code Section 53646(b).
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
There is no funding impact to the City related to these reports. However, the City does receive
interest revenue based on the interest rate of the investment(s).
No or minimal future staff time is projected.
BACKGROUND:
This report represents the City's investments as of November 30 and as of December 31, 2013.
It includes all investments managed by the City, the investment institution, investment type,
book value, maturity date, and rate of interest. During both periods, the investment portfolio
was in compliance with all State laws and the City's investment policy.
ANALYSIS. OF ISSUES:
The Director of Administrative Services has historically submitted to the City Council a monthly
report, providing the following information:
1. Type of investment.
2. Financial institution (bank, savings and loan, broker, etc).
3. Date of maturity ..
4. Principal amount.
· 5. Rate of interest.
6. Current market value for all securities having a maturity of more than 12 months.
7. Relationship of the monthly report to the annual statement of investment policy.
~·· ' :
Item 8.b. - Page 1
CITY COUNCIL
CONSIDERATION OF INVESTMENT DEPOSITS
JANUARY 28, 2014
PAGE2
ALTERNATIVES:
The following alternatives are provided for the Council's consideration:
Recommended Alternative -Approve staffs recommendation to receive and file the
attached report listing the investment deposits.
Do not approve staffs recommendation
Provide direction to staff
ADVANTAGES:
Safety of principal is the foremost objective of the City. Investments are undertaken in a
manner that seeks to ensure the preservation of capital in the overall portfolio.
DISADVANTAGES:
Some level of risk is present in any investment transaction. Losses could be incurred due to
market price changes, technical cash flow complications such as the need to withdraw a non-
negotiable Time Certificate of Deposit early, or even the default of an issuer. To minimize such
risks, diversifications of the investment portfolio by institution and by investment instruments are
being used as much as is practical and prudent.
ENVIRONMENTAL REVIEW:
No environmental review is required for this item.
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted in front of City Hall on Thursday, January 23, 2014. The Agenda and
report were posted on the City's website on Friday, January 24, 2013. No public comments
were received.
Attachments:
1. Portfolio Summary: November 30, 2013
2. Portfolio Summary: December 31, 2013
Item 8.b. - Page 2
CITY OF
Investments
Local Agency Investment Fund
Certicates of Deposit
Redding Bank of Commerce
Mission Community Bank
Rabobank
Silvergate Bank
BMW Bank
Cathay Bank
Heritage Oaks Bank
Mutual Securities
Total Certificates of Deposit
Agency Bonds
$
Book Value
10,943,500.85
250,000.00
1,000,000.00
251,883.15
249,000.00
245,000.00
248,000.00
100,000.00
250,000.00
2,593,883.15
Federal Home Loan Bank (Freddie Mac) 1,865,718.75
Federal Home Loan Bank (Fannie Mae) 2,000,000.00
Federal Home Loan Bank (Fannie Mae) ____ 9_95_,,_10_9_.o_o_
Total Agency Bonds 4,860,827.75
TOTAL INVESTMENTS =$=====18:::::,3::9:::::8::,2:::1 ::::1.:::75::
CITY OF ARROYO GRANDE
Portfolio Management
Portfolio Summary
November 30, 2013
Interest
Interest Rate Rate PY
0.263% 0.324%
1.410%
1.040%
0.990%
0.900%
2.000%
0.750%
0.500%
0.750%*
1.954%
1.000%
0.921%
Date of Purchase
March 22, 2012
July 1, 2012
September 28, 2012
November 14, 2012
August 30, 2013
August 30, 2013
October 21, 2013
March 9, 2012
August 28, 2013
August 28, 2013
August28,2013
* -Interest rate increases by .25% per year if certificate is not called.
Term
36mos
36mos
36mos
54mos
60mos
30mos
13mos
Callable@
3/9/2014
60mos
36mos
35mos
ATTACHMENT 1
City of Arroyo Grande
300 E. Branch St.
Arroyo Grande, CA 93420
Phone: (805)473-5400
Maturity Date
March 22, 2015
June 30, 2015
September 28, 2015
May 15, 2017
August30,2018
February 29, 2016
November 21, 2014
March 9, 2017
% of Portfolio
59.481%
1.359%
5.435%
1.369%
1.353%
1.332%
1.348%
0.544%
1.359%
14.099%
August21,2018 10.141%
August 26, 2016 10.871%
July 26, 2016 ____ 5_._40_9_o/c_o
26.420%
100.000%
Item 8.b. - Page 3
CITY OF ARROYO GRANDE
Portfolio Management
Portfolio Summary
December 31, 2013
Interest
Investments Book Value Interest Rate Rate PY Date of Purchase
Loca/AgencylnvestnrentFund $ 9,943,500.85 0.263% 0.324%
Certicates of Deposit
Redding Bank of Commerce 250,000.00 1.410% March 22, 2012
Mission Community Bank 1,000,000.00 1.040% July 1, 2012
Rabobank 253,153.41 0.990% September 28, 2012
Silvergate Bank 249,000.00 0.900% November 14, 2012
BMW Bank 245,000.00 2.000% August 30, 2013
Cathay Bank 248,000.00 0.750% August 30, 2013
Heritage Oaks Bank 100,000.00 0.500% October 21, 2013
Mutual Securities 250,000.00 0.750%* March 9, 2012
Total Certificates of Deposit 2,595, 153.41
Agency Bonds
Federal Home Loan Bank (Freddie Mac) 1,865, 718. 75 1.954% August 28, 2013
Federal Home Loan Bank (Fannie Mae) 2,000,000.00 1.000% August28,2013
Federal Home Loan Bank (Fannie Mae) 995,109.00 0.921% August 28, 2013
Total Agency Bonds 4,860,827.75
TOTAL INVESTMENTS $ 17,399,482.01
* -Interest rate increases by .25% per year if certificate is not called.
Term
36mos
36mos
36mos
54mos
60mos
30mos
13 mos
Callable@
3/9/2014
60mos
36mos
35mos
ATIACHMENT2
City of Arroyo Grande
300 E. Branch St.
Arroyo Grande, CA 93420
Phone: (805)473-5400
Maturi~ Date % of Portfolio
57.148%
March 22, 2015 1.437%
June 30, 2015 5.747%
September 28, 2015 1.455%
May 15, 2017 1.431%
August 30, 2018 1.408%
February 29, 2016 1.425%
November 21, 2014 0.575%
March 9, 2017 1.437%
14.915%
August 21, 2018 10.723%
August26,2016 11.495%
July 26, 2016 5.719%
27.937%
100.000%
Item 8.b. - Page 4